De-leveraged bonds

Bonds that pay investors according to a formula that is based on a fraction of the increase or decrease in a specified index, such as the Constant Maturity Treasury (CMT) rate or the prime rate. For example, the coupon might be 0.5 x 10-year CMT + 150 basis points. The "de-leverage multiplier," (0.5) causes the coupon to lag behind overall movements in market yields.

Browse: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

- - - - -